fbpx 47341-004: South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 3 | Asian Development Bank

India: South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 3

Sovereign (Public) Project | 47341-004 Status: Proposed

The third tranche (tranche 3) of the investment program is proposed for financing the subproject which has been selected and designed in accordance with the selection criteria in the Financing Framework Agreement. The subproject proposed for the tranche 3 is to upgrade the remaining section of the road from Imphal, the capital of Manipur state, to Moreh, the border town of Myanmar. The road is part of Asian Highway No. 1 (National Highway No. 102) in Manipur state. Under the tranche 2 project, the northern 66 km section of the Imphal to Moreh road is being upgraded to full two- to four-lane carriageway. During the tranche 2 preparation in 2017-18, upgrading of the last 30 km section of Imphal-Moreh road was deferred to a future tranche because the project preparation was anticipated to be time-consuming. The tranche 3 will complete upgrading of Imphal-Moreh section and further improve the regional connectivity among the South Asia Subregional Economic Cooperation (SASEC) countries.

 
Project Name South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 3
Project Number 47341-004
Country India
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: South Asia Subregional Economic Cooperation Road Connectivity Investment Program - Tranche 3
Ordinary capital resources US$ 38.84 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The third tranche (tranche 3) of the investment program is proposed for financing the subproject which has been selected and designed in accordance with the selection criteria in the Financing Framework Agreement. The subproject proposed for the tranche 3 is to upgrade the remaining section of the road from Imphal, the capital of Manipur state, to Moreh, the border town of Myanmar. The road is part of Asian Highway No. 1 (National Highway No. 102) in Manipur state. Under the tranche 2 project, the northern 66 km section of the Imphal to Moreh road is being upgraded to full two- to four-lane carriageway. During the tranche 2 preparation in 2017-18, upgrading of the last 30 km section of Imphal-Moreh road was deferred to a future tranche because the project preparation was anticipated to be time-consuming. The tranche 3 will complete upgrading of Imphal-Moreh section and further improve the regional connectivity among the South Asia Subregional Economic Cooperation (SASEC) countries. It will further reduce transaction costs along the targeted cross-border corridor substantially, ushering in economies of scale and commercial prosperity.
Project Rationale and Linkage to Country/Regional Strategy Road transport is the dominant mode in South Asia, accounting for more than 65% of freight movement. Its importance is growing, as most of the trade between India and neighboring countries takes place along land routes. Cross-border trade between South Asia Subregional Economic Cooperation (SASEC) countries via India to Myanmar and Thailand is almost entirely by sea, which makes exchanges slow and expensive, especially for the landlocked countries and the Northeastern Region of India. Trade via roads between India and Myanmar, through Moreh, Tamu and Reed, comprises only 1.5% of the total road-based cross-border trade of Myanmar ($1.1 billion), against 70.0% with the People's Republic of China and 26.0% with Thailand.
Impact The impact will be regional connectivity with India's Northeastern Region, Nepal, Bhutan, Bangladesh, Myanmar, and Thailand improved.
Outcome Road connectivity and efficiency of the international trade corridor in Manipur improved.
Outputs Road for regional connectivity improved
Geographical Location Nation-wide
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

Tranche 3 is categorized A in accordance with the SPS. 21.066 km of the road passes through the Yangoupokpo Lokchao Wildlife Sanctuary (YLWS). Of this, about 8.45 km passes through the eco-sensitive zone of the sanctuary, 9.1 km is located along the border of the core zone of the sanctuary and about 13 km passes through the buffer zone of the sanctuary. While the sanctuary shelters about 13 wildlife species including the IUCN endangered Asian Elephant and Pangolin, none of the endangered species are found in the vicinity of the project road. Clearance required from the National Wildlife Board for the road (since it passes through a sanctuary) has already been obtained.

Most of the road section is located in hilly terrain which will require challenging cut and fill works. Given that the road ends at Moreh, a border town near Myanmar, cross border movement of workers for the project as well as transport of construction materials and resources can be expected.

Based on the above, key environmental risks posed by the project road are:

- Negative impacts on the YLWS and wildlife species

- Slope failures and soil erosion issues

- Cross border transmission of diseases and health issues

- Cross border environmental issues (air pollution, road safety, solid and hazardous waste)

Involuntary Resettlement Tranche 3 is categorized B in accordance with the SPS. The existing alignment will be improved following the most feasible design that minimizes land acquisition and resettlement impacts. NCRTC has prepared a combined resettlement and indigenous peoples plan for Imphal to Moreh section of AH-1, Package 3 covering 29.730 kms from Khongkang to Moreh. A total of 95.02 acres and 155 structures will be acquired, which will affect 135 households (713 persons). Of the total number of affected households, 25 (132 persons) will experience significant impacts. The affected households will be entitled to compensation for the loss of land and structures at replacement cost, shifting allowance, and income restoration assistance. The resettlement cost is estimated at about $8 million.
Indigenous Peoples Tranche 3 is categorized B in accordance with the SPS. Planning was undertaken in accordance with the indigenous peoples planning framework of the investment program. A total of 132 Kuki and Naga scheduled tribe households will be impacted by the acquisition of strips of communally owned land. Social impact assessment (SIA) indicates that such acquisition, as well as the improved access to be brought about by the program, will not affect the human rights, livelihood systems, and culture of the affected Kuki and Naga communities. Moreover, the requirement for broad community support is not triggered because Tranche 3 does not involve physical relocation from customary lands nor use of tribal knowledge and resources. The SIA suggests that tribal groups in the subproject areas freely interact with outside communities and live along existing roads to benefit from better connectivity. NCRTC has prepared a combined resettlement and indigenous peoples plan to mitigate adverse impacts on scheduled tribe households.
Stakeholder Communication, Participation, and Consultation
During Project Design Meaningful consultations were held with affected persons and other key stakeholders while preparing the IEE and combined RP/IPP.
During Project Implementation Consultation, as required, will be carried out during project implementation. A grievance redress mechanism will be established to address any concerns and complaints during implementation.
Business Opportunities
Consulting Services Not applicable.
Procurement NHIDCL has started advance contracting activities for the tranche 3 based on the FFA provisions. The FFA also has a provision to allow retroactive financing of eligible expenditures toward civil works, equipment and materials up to 20% of the proposed individual loan, incurred before loan effectiveness but not earlier than 12 months before the date of signing of the related legal agreement. The government requests retroactive financing for the tranche 3.
Responsible ADB Officer Muramoto, Shigehiko
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Timetable
Concept Clearance -
Fact Finding -
MRM 14 Jul 2020
Approval -
Last Review Mission -
Last PDS Update 28 Oct 2019

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